The Inland Revenue Board (LHDN) suggests that the electronic invoicing (e-invoicing) system could facilitate the reintroduction of the goods and services tax (GST). According to LHDN CEO Nizom Sairi, the e-invoicing system aligns with the GST and promotes transparency within the economy.
Malaysia moving to e-invoicing for large taxpayers
He added that this system could support the government’s 2024 tax collection target of RM185 billion by requiring businesses to maintain comprehensive transaction records. E-invoicing, set to become mandatory for large taxpayers starting August 2024, is expected to bring hidden economic activities to light and enhance tax compliance.